My name is Mike, and I'm from California.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

Because I don't see any details about a commission he is owed in the California Realtor Purchase Agreement, so how would I promise him his 5% for example?

This is generally true throughout all 49 states... and California.

California I believe can make it happen but the capital needed and rental laws make things a little more challenging

I doubt that is much of an issue in California although if you invest in the mountains it might be something to be mindful of.

And how is california not higher with the increasing number of forest fires?

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required. 

We are seeking to buy investment property near the coast of California between Ventura and Morro Bay.

Arizona’s steady flow of out-of-state buyers and rental interest, along with its attractive tax environment, makes it a top choice for investors who prefer markets with minimal seasonal fluctuations.Southern California: Coastal Appeal with High DemandCalifornia as a whole can experience seasonality, especially in its northern regions.